Campus-Based Aid
Campus-Based Aid
Despite the widespread availability of private loans, the best answer to meeting tuition and living expenses for higher education still comes from the federal government programs. There are three in particular that are handled at individual campuses, and may be just what you need to get that degree. Not all campuses will offer each of the three programs, but they are likely to have at least one of the options. Be sure to check your school in particular by inquiring at the financial aid advisor’s office.
The first program to explore that is based on campus is the Federal Supplemental Educational Opportunity Grant program, or FSEOG. This program targets undergrads that provide evidence of extreme financial need. These are determined by the information submitted on a FAFSA, and are just like the Pell Grants that are awarded; they do not need to be paid back.
The FSEOG can award you anywhere from $100 to $4000 a year, and the amount is determined not only by your specific need, but also the amount of money the school has to give, the date you apply, and the individual campus policies. If you qualify, the money is credited directly to your account in most cases. There are schools that will disburse the money to the individual student, but be sure to determine what your school plans to do. The payments will be made at least once each term, so the number of payments will vary based on the learning plan for your school.
Federal Work Study or FWS is the second kind of program that is coordinated on campus. It is a way to provide students with part-time jobs that are related to what they are planning to earn their degree to do. It also gives them a chance to earn money towards tuition and higher education expenses. Generally, the pay will be hourly for undergrads, and they will conform to the federal minimum wage requirement. It could be higher, depending on the position you are filling. The total income you make, however, is limited to the agreed upon Financial Work Study award. The employer will take into consideration your school schedule when making a work schedule.
Many work-study program positions will be located on-campus. Some could be located off-campus, and will generally be with a non-profit company. An extremely limited number of opportunities will be with private employers, but the restrictions are extreme, and the position must relate to your degree as much as possible. Even then, there are further restrictions on the actual position you can hold over the course of your education.
Finally, Federal Perkins Loans are awarded on a campus basis. It is an extremely low-interest loan that is extended to those who demonstrate excessive financial need, and usually directly through the financial aid office. The Perkins Loan is repaid directly to the school rather than a loan servicing company. The limit to a Perkins Loan is $4000 per year for undergrads, and up to $20,000 for the entire course of your college career. There are no application fees, nor any origination fees, so these are certainly the best way to go when funding education at a higher education institute. It will be repaid after you have been out of school for 9 months, and will be paid in amounts that are calculated to be manageable when the lender (the school) has all of your current income obligations.
All told, a federal education program is best in the long term. The ease of quick private student loans will not likely end up as beneficial as it would be to take the time to go through the process for federal funding. Saving money any way possible is the most beneficial!